Halal Food: Understanding the Basics of a Growing Global Market
What is Halal Food?
The term "halal" in Arabic means "permissible" or "lawful". When used in the context of food, halal refers to food items and food productions that are in accordance with Islamic Sharia laws. For a food to be considered halal, it must meet certain requirements such as:
- The food item should not consist of any pork, pig derivatives or ingredients made from it. Pork and pig by-products are strictly prohibited in Islam.
- Animal slaughtering must be performed in the prescribed Islamic way. Animals need to be slaughtered by cutting the jugular vein, carotid artery and windpipe while invoking God's name. Meat from animals that died due to other methods or were not slaughtered properly is considered haram or unlawful.
- Alcoholic or intoxicating ingredients should not be used in preparing or processing the food. Certain by-products derived from alcohol are also not allowed.
- Carnivorous animals and birds of prey with fangs like lions, tigers, etc. are not permitted for consumption.
- Food should not consist of any components originating from animals forbidden in Islam like snakes, scorpions, land animals without external ears etc.
Some key facts about the halal food industry include:
- The top 5 countries accounting for over 60% of the total Halal Food are Iran, Turkey, Pakistan, Bangladesh and Arab nations. Malaysia and Indonesia are also emerging as leading halal hubs.
- Meat, poultry, beverages, snacks, herbs & spices and personal care products make up the major categories in the halal food space. Meat/poultry accounts for over 30% of the global spend.
- Non-OIC Muslim countries like India, China, USA and Western Europe contribute nearly 30% to overall halal food demand. Export revenue from halal products is growing fast in many nations.
- Halal food certification involves auditing supplier facilities, ingredients, production systems and ensuring standardized processes. Over 150 certification agencies are active globally.
- Manufacturers are launching more value-added, functional halal foods to suit health-conscious, affluent consumers. Categories include organic, ready-to-eat, infant formulas etc.
- Technology startups are modernizing aspects like authentication, traceability, cold-chain infrastructure and e-commerce for halal food businesses. Blockchain use is set to rise.
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